Classifying Employees

Taking shortcuts can be costly.
Very often I see organization miss-classifying employees out of convenience or ignorance.

For example, the office administrator is required to work 25 hours a week. Why not multiply the 25 hours by the amount per hour paid and pay the employee a “salary” every pay period. Even if this is a possibility, your organization still must keep track of actual hours worked and brakes taken. Office Administrators are non-exempt employees. Your short cut can lead to a costly lawsuit and the proof your employee only worked for 25 hours in any given week is up to your organization.

Another issue I’m often faced with are misclassified are musicians in church settings. They often like to be 1099 contractors for their own benefit. Though, their job descriptions disqualify them from being such classification. The behavioral common law rules of when and where to work, or what they perform to make them an employee of your organization. Not only are they employees, but the law also states they are non-exempt employees who need to be paid hourly. The law considers them as common-law employees;

See: https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee for more information.

a:hirsch

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